Sure, we’ve seen the statistics showing that ICHRA adoption has grown by 83% in the larger plan (>200 life) market, but we’re also seeing it with our own two eyes. Our average plan size has more than doubled over the past year and is only moving up. Brokers are coming to us with larger clients, and with larger clients, come larger savings. But that’s not the only reason ICHRA works well for larger companies. Here are three key reasons:
One of the significant challenges large companies face is that they’re at the mercy of the health of their employees. Benefits decision makers have inadvertently signed up to be in the risk business, with an annual fear of high renewals. By shifting employees from group plans to the individual market through ICHRA, companies spread their risk over hundreds of thousands of people, not just their workforce. This move helps mitigate large renewals and stabilizes costs, making budgeting more predictable and manageable.
As companies grow, they’re often spread throughout the country, making finding a single plan that works for everyone increasingly difficult. ICHRA allows employees to pick plans that are local to them - not their company headquarters - as well as select the preferred doctors, medications, and networks tailored to their specific geographical area. This flexibility ensures that every employee gets the coverage they need, no matter where they live in relation to their employer.
In today’s world, people expect personalization in every aspect of their lives, whether it’s their social media feed, their shopping experiences, or their television recommendations. Health benefits are no different. The idea that employees can now have the ability to choose not only their own carrier but also the level of plan that best suits their needs is increasingly appealing. This level of personalization can enhance employee satisfaction and engagement with their health benefits, as well as their company.
ICHRA is not just for small businesses; it’s a powerful tool for large organizations too. By reducing risk, offering flexibility, and meeting the demand for personalized health benefits, ICHRA is helping large companies manage their health benefit costs more effectively while providing employees with the coverage they need.
As we continue to see an increase in larger clients adopting ICHRA, it's clear that this innovative approach to health benefits is here to stay. If you’re considering ICHRA for your large or growing organization, now is the perfect time to explore how it can work for you.
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